The United States has introduced fresh sanctions against Russia’s two largest oil companies, Rosneft and Lukoil, as part of a fresh effort to pressure Moscow into agreeing to an immediate ceasefire in its ongoing war against Ukraine.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the measures on October 22, saying they were introduced in response to Russia’s continued unwillingness to engage in a genuine peace process.

The sanctions are aimed at further restricting the Kremlin’s ability to generate revenue from its energy exports, which have been a major source of funding for its war operations.

According to the Treasury, the sanctions target Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil), both major players in Russia’s oil and gas industry.

Rosneft is a vertically integrated energy company involved in oil exploration, refining, and transport, while Lukoil operates across exploration, production, and international marketing of oil and gas.

Both companies have been sanctioned under Executive Order 14024 for operating in Russia’s energy sector. Along with the parent companies, several subsidiaries of Rosneft and Lukoil have also been listed under the new sanctions.

Any entity owned 50 percent or more, directly or indirectly, by these companies will automatically face the same restrictions. The Treasury emphasised that the move is intended to weaken Russia’s ability to fund its war and encourage a negotiated peace.

U.S. Treasury Secretary Scott Bessent said the department is ready to take further action if required to support President Donald Trump’s efforts to end the conflict. He also called on U.S. allies to adopt similar sanctions against Moscow.

While the Biden administration had previously relied on financial and trade restrictions to isolate Russia since the war began in February 2022, this is the first Ukraine-related sanction imposed during President Trump’s second term.

The Treasury reiterated that the United States remains committed to pursuing peace in Ukraine and that a lasting resolution depends on Russia’s willingness to negotiate in good faith.

Reference: US Treasury